10 New crypto tokens coming everyday, report says

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According to a recent reports, in the last year, as crypto adoption is at a peak due to institutional and personal investment, around 5,000 new crypto tokens have arrived in the market in the last year, which is nearly 10 tokens per day.

Crypto tokens peak in 2021

According to a recent report, the current crypto tokens count has surpassed 12,000 recently. In September 2020, the number of coins was around 7,100, implying that at least 4,900 new crypto tokens have come to the market alone in one year.

The situation signifies the highest YoY sweep in the total number of cryptocurrencies. The digital cryptocurrency industry received an absolute market cap of more than $2 trillion during this period.

The most important factor in the popularity of the crypto market is the price performance of Bitcoin in the past year. Another critical factor is the display of interest by institutions.

Along with that, many famous personalities like Jack Dorsey and Elon Musk have shown interest which further increased the involvement of people. Increased artists’ involvement also resulted in interest in NFTs. Many developers were inspired by the technology to develop their own DeFi tokens to avoid missing out on future demands and possibilities.

Additionally, high inflation rates in various economies also attracted people to opt for blockchain technologies as these have a fixed supply and will not cause inflation in the long term. As a result, when the stock market in September 2020 fell, the crypto market was still standing. This inspired even more people to understand the potential of the crypto industry.

Is the market benefiting from this?

Despite the high adoption of cryptocurrencies and blockchain, the growing number of crypto tokens feels overfitted and might be dangerous in the future.

Many experts have been making statements in this regard, and Gary Gensler, SEC chair, is one of the lists. He finds himself skeptical in the situation of over-growing coin count. The absence of structured regulations makes the situation even more dangerous. He said that he has plans to regulate the system to protect hardworking investors from collapsing.

Many tokens that are giving high profits in the short term might be found as scams in the future. Therefore, it is best to research the projects before investing and avoid “shortcuts.”

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